When you set foot on any business venture, you need to define your targets. There should be a long-term target and short-term one. In fact, your whole trading schedule should revolve on it. This would, if not anything, give you a sense of direction.
If you have direction, then the way becomes clear and the target can be achieved by careful traveling. In stock terms, setting targets would be defining numbers or money.
You can set a long-term target of “n” number of stocks by the end of the year valued at “x” sum of money. Short-term targets should contribute towards the larger goal.
In this case scenario, if there is a bear and bull run you would know how much you should buy and how many to sell. Shortly put, you would know what you are doing and be rest assured that you are going through the right direction.
If 10 big stocks would fetch you the money that 100 stocks combined would give you then you can crunch the numbers, see if it tallies up with your target and make the decision.
Sometimes, a bulk investment may fetch you a handsome return. There is nothing wrong in going for it. But make sure that it is a calculated risk. If this is the one you are ready to roll your dice on, let there be supporting stocks that will hold you good even if you
lose the roll of dice.
A bird’s eye view on the target always hits the bull’s
eye!
